The deal furthers eBay’s vertical expansion strategy in sneakers and offers customers added confidence in the purchase of high-value items eBay Inc. (Nasdaq: EBAY), a global commerce leader that connects millions of buyers and sellers around the world, and Sneaker Con Digital have entered into a definitive agreement under which eBay has acquired Sneaker Con’s authentication business, a leading sneaker authenticator with operations in the U.S., U.K, Canada, Australia and Germany.
Source: eBay Acquires Sneaker Con Authentication Business
The series of moves taking place in sneaker retail is being mirrored in sneaker resale. For every account Nike removes at retail, retailers are countering by aligning with On Running and other brands. This push and pull at brick and mortar isn’t similar to what’s happening in resale, but the fact is every area of sneaker retail is adjusting to how the consumer is interacting with the both physical and digital retail. Less than a month ago, I wrote about Poshmark acquiring Suede One:
eBay Continues to Take Body Blows from other Third Party Platforms | Suede One Sells to Poshmark
That acquisition was a clear shot at sneaker resale platforms. Poshmark isn’t really a player in high end resale. The go to for premium sales online are StockX and GOAT in digital and Stadium Goods in omni-channel. eBay was the leader for years, but the shifts in 2009 slowly eroded eBay’s dominance and the e-commerce giant never adjusted. In 2016, after allowing Campless to scrape its data and become StockX, eBay finally began to recognize what was on the horizon. The giant wouldn’t begin to fight back until a few years ago. During this time StockX grew from 3 million visits a month to over 35 million visits.
eBay’s Authenticity Guarantee for Sneakers Doesn’t Solve the Real Issue
I explained in 2020, eBay’s problem wasn’t authentication. It was and still is the interface. The platform hasn’t updated in 20 years. While authentication is admirable, it doesn’t offset the fact that eBay has erased fees for the shoes that have to be authenticated. The authentication is a strategy hoping buyers purchase more to offset the loss leader aspect of authentication. What eBay’s acquisition of Sneaker Con’s service does accomplish is keeping data in house. One of the primary issues I saw in eBay working with Sneaker Con who in their authenticity check is solved with this announcement. In theory, every customer who had their sneakers checked became a Sneaker Con data point. Sneaker Con could have utilized the information gained to fuel their own growth. While I’m not certain this was the case and what was happening, eBay just countered Poshmark and repaired a serious flaw in my opinion.
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